Mining lease and development

A holder of claims may apply for and obtain a Mining Lease for production if the existence, extent and value of an orebody have been determined and a decision to commence production has been made. Production means mining for the purpose of sale, trade, barter or stockpiling.

Before a Mining lease is granted, a proposed project would be required to obtain a provincial Environmental Impact Assessment (EIA) determination, at minimum, and could require federal Environmental Impact Assessment determination and authorizations depending on site specifics of the project.

Detailed requirements for obtaining and maintaining a lease are specified in the Mining Act; however, for a quick reference, check the Summary of Mineral Claim and Mining Lease Requirements document.

A Mining Lease will require:

• submission of a feasibility study including a mining plan and program for protection, reclamation and rehabilitation of the environment
• an EIA determination
• an application fee of $500
• proof of surface rights ownership, consent of owner, and consent of municipality or local planning commission if applicable
• financial security for reclamation
• a lease boundary survey
• first year’s lease rental

The Environmental Impact Assessment documentation is reviewed by multiple government agencies, both federal and provincial, as well as non-governmental stakeholders and First Nations. For the mining lease review, the feasibility study is a confidential document that is reviewed within the department, whereas the mining plan and program for protection, reclamation, and rehabilitation of the environment (or the ‘reclamation plan’) is reviewed between both departments. Both processes can be conducted simultaneously, but a mining lease cannot be granted without approval. Federal review may also be triggered depending on production rates (exceeds 3000 tonnes per day).

The Crown has a duty to consult with First Nations, and project proponents are expected to engage with them early in the process. Guidance for consultation can be obtained by contacting the Department of Indigenous Affairs.

The requirements for reclamation are set forth in the Mining Act and general regulations. The main goals for reclamation of a good mining project are:

• fully understanding the environmental risks
• planning an environmentally acceptable mining operation and minimizing risks to the extent that is practical
• planning for progressive reclamation during operations if possible
• planning for post-closure reclamation to achieve a walk-away scenario if at all practical
• providing a financial security to government to cover the estimated costs of reclamation

The goal of reclamation after mining is to return the land to a use whose value is at least equal to its previous value and to ensure the long term ecological and environmental stability of the land and its watershed. This includes leaving the site in a state that is safe to the public and physically stable for the long term. It is preferable in all cases to minimize the footprint of mining operations, plan for progressive reclamation and allow for a situation that is a “walk away” scenario.

Financial security for reclamation is a mandatory requirement for obtaining a mining lease and is based on the engineering costs outlined in the program for protection, reclamation and rehabilitation of the environment. This security must be in a form and amount acceptable to the Department of Natural Resources. It will be returned to the company once reclamation is completed according to the plan and the site is restored to an acceptable state.

Advanced exploration activities may also require a reclamation plan and financial security, depending on the scale of the work or site-specific sensitivity. This is determined on a case-by-case basis by the Recorder through Form 18 approval, in consultation with the Department of Environment and Local Government.

Acceptable forms of financial security include:

• money
• a negotiable bond signed over to the province
• an irrevocable letter of credit from a bank or other lending institution acceptable to the minister, valid for at least one year
• a bond from an insurance company authorized and licensed to do business in New Brunswick, valid for at least one year and in the form prescribed by regulation

The objective is to hold sufficient financial security to cover the costs of outstanding reclamation work, assuming the use of third-party contractors. This security will be re-evaluated as the project advances and if conditions or technology change.

Additionally, the Department of Natural Resources may request financial securities for mining projects to cover environmental protection, monitoring and water treatment under the Clean Environment Act and operating approvals for the mine site.

There are more than 375 mine openings at 63 separate mine sites in New Brunswick. Most of these openings are on private land. Many of them predate modern safety rules. The ground around a mine opening can become unstable and may collapse.

The landowner is responsible for abandoned mine openings. Under the Criminal Code of Canada: “Everyone who leaves an excavation on land that he owns or of which he has charge or supervision is under a legal duty to guard it in a manner that is adequate to prevent persons from falling in by accident and is adequate to warn them that the excavation exists.”

As the owner, you may be held liable for injury that occurs on your land. You must take reasonable measures to make sure open holes are made safe. Here’s how you can restrict access and minimize risk:

1. Erect signs to warn of the danger.
2. Make sure that access to the opening is restricted, as the ground around mine openings can be fragile.
3. Use barricades to restrict access (this can include fencing, earthen berms, boulders, concrete blocks, steel grating, wire screen and timber.)
4. Inspect the area on a regular basis to make sure it is safe and secure.

Signs and barricades do not remove the risk of someone going into a mine. The only way to prevent access is to seal the mine permanently. This can be done by filling or blocking with overburden, placing timber or concrete bulkheads for tunnel openings, placing concrete caps for shafts or blasting.